Two main consumer trends are shaking up the insurance industry, namely, the need for transparency and personalization. A most vivid example of the insurance product addressing modern consumer needs is pay-per-mile insurance.

The growth of pay-per-mile insurance products is enabled not only by the rapid advancements of telematics technology but also by the motivation of insurance carriers to build a more satisfied and loyal customer base. The truth is, with pay-per-mile insurance, customers can have full control over their insurance costs and achieve significant savings.

The question is where do you start as an insurance company? 

Technology possibilities today will have a huge impact on a number of business aspects within insurance companies. One of those is how insurance products are created. If we leave the motor insurance portfolio aside – since it is regulated in most markets, disruption possibilities should focus on comprehensive insurance products. Insurers need to look at each individual risk covered by their insurance products and identify potential cross-sales possibilities based on collected telematics data.

The choice of telematics technology should be considered in the earliest phases of insurance products’ creation. For example, if smartphone technology is used, pay-per-mile insurance products may not comprise car theft and parking damage risks.

On the other hand, the choice of smartphone-based telematics technology enables the collection of rich data and identification of many cross-sales opportunities within the user-base. 

How does it work with Amodo technology?

Basic Kasko insurance is the requirement for drivers to be able to use a pay per mile coverage. Basic Kasko covers the basic risks while the car is parked, then purchasing pay per mile activates the full Kasko coverage.  

Full Kasko coverage is charged and spent in kilometers, purchased and topped up at any time via the app. An available number of kilometers are visible to a user in real-time and can be easily turned on or off. This way user pays full coverage per kilometer, the same way as prepaid telecom services function. This gives users the feeling of control over their own expenses. Safe driving can enable users to earn extra bonus kilometers for full coverage.

What’s in it for an insurer?

With Amodo’s Pay-per-Mile technology the insurer will be able to create a new insurance product tailored to fit their users’ individual needs. This proposition will also differentiate the insurer from the competitors, boost brand awareness and have a positive impact on consumer perception. Finally, insurers are able to increase consumer satisfaction and loyalty.

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